Monica, a 19-year-old Accounting & Finance student at UWA, has spent her whole life living with her parents but has decided that she wants to become more independent. Monica moves out of her parents home and into an apartment with her friend, Rachel. Since they were struggling for cash and had hardly any possessions to take to the new apartment, Monicas brother Ross, (who is also Rachels boyfriend), purchases a couch for Rachel and Monica. The couch costs $1000 and is delivered to their apartment. After it is delivered, Monica rings up Ross to thank him for the kind gift, and says, I will take Ben (Ross son) to Adventure World next weekend to say thanks!. Ross then says, if you are still struggling, how about you come over sometime and help me with chores for two hours and I will buy you a brand new, top of the line fridge in exchange? Monica replies, yes, thats perfect! 2 On the same day, Monica helps Ross clean the house for two hours. Later that day, Ross and Monica get into a fight because Monica makes a comment about Ross having taken a break from his relationship with Rachel, (a touchy subject to Ross). As a result, Ross refuses to buy Monica the fridge. In retaliation, Monica then refuses to take Ben to Adventure World the following weekend.

Use the IRAC method to advise Monica & Ross whether:

a) They have entered into an agreement in relation to the couch/Adventure World

b) They have entered into an agreement, intended to be legally bound and provided consideration in relation to the chores/fridge.

Note: (do one IRAC for a) and a separate IRAC for b)